The K-line is derived from the opening price, closing price, highest price and lowest price within a period of time. It represents the rise and fall of the stock price within a period of time. The K-line includes daily K-line, weekly K-line and weekly K-line. K line, monthly K line, etc.

The K-line itself has no guiding significance, but the technical form formed by the K-line combination has certain guiding significance for stock operations, such as the common bullish K-line combinations: Morning Star, Red Soldiers, Dawn, etc. , common bearish K-line combinations: evening star, tombstone line, three crows, etc.

Origin of K-line

K-line chart originated from the Tokugawa shogunate era in Japan. It was used by merchants in the Japanese rice market to record the market conditions and price fluctuations of the rice market. It was introduced to the stock market and futures market because of its delicate and unique marking method.

At present, this kind of chart analysis method is particularly popular in our country and even in Southeast Asia. Because the shape of the chart drawn by this method is quite like a candle, and these candles are black and white, it is also called a Yin and Yang line chart.

Through the K-line chart, we can completely record the market performance of each day or a certain period. After a period of trading, the stock price will form a special area or pattern on the chart. The shapes show different meanings.

We can find out some regular things from these changes in form. K-line chart patterns can be divided into reversal patterns, consolidation patterns, gaps and trend lines, etc.

So, why is it called "K line"? In fact, "K" in Japan is not written as "K", but as "_" (Japanese pronunciation kei). The K line is the pronunciation of "_ line", and the K line chart is called "_ line" , developed in the West with its English initials "K" literally translated as "K" line.

Drawing method

First, we find the highest and lowest prices of the day or a certain period, and connect them vertically in a straight line; then we find the opening price of the day or a certain period. and the closing price, connecting these two prices into a long and narrow rectangular cylinder. If the closing price of the day or a certain period is higher than the opening price (i.e. it opens low and closes high), we will display it in red or leave a blank on the column. This column is called a "yang line". If the closing price of the day or a certain period is lower than the opening price (that is, opening high and closing low), we will display it in green, or paint the column black, and this column will be the "yin line".